Abstract: The higher education system in India has been undergoing multidimensional

changes in the recent years. The Iast changing environmental Iorces in higher education
sector have challenged the traditional concept oI higher education as a public service`. In
2008, when recession shook entire world, India was also aIIected. In this paper we will
analyse the impact oI recession on India`s education system with special Iocus on India`s
higher education system .We will also discuss in this paper about the increase in number oI
students Ior proIessional courses like engineering despite drastic decrease in job sector.
































Introduction

What is Recession?

Recession is not to be conIused with depression. Recession means a slow down or slump or
temporary collapse oI a business activity. In its early stage it can be controlled in a
methodical manner. Experience helps to avert total collapse. Unchecked, it leads to severe
depression. Depression is a dead end. It is time to close shop completely. It is a total state oI
irrevocable economic Iailure. When a country is doing well all round its Gross Domestic
Product (GDP) is on the rise. Overall economy is bullish; it is not only the stock exchanges
that tell riches to rags stories but even small businesses. It all adds to the national exchequer.
An economist is likely to give a detailed, comprehensive deIinition oI recession. But Ior the
layman who has been aIIected knows it only one way-when he loses his job and has no
money to pay his credit and loans. Recession is when the consumer Iaces Ioreclosure and the
banker comes knocking Ior his pound (or dollar) oI Ilesh. Many companies and whole
countries go bankrupt Ior want oI liquid Iunds and cash Ilow Ior even daily requirements.
auses of recession
Currency crises
Energy crises
War
Under consumption
Overproduction
Financial crisis
Price oI Fuels

Effects of recession
Bankruptcies
Credit crunches
DeIlation(DisinIlation)
Unemployment
Foreclosures

India`s Education system
Indian higher education system is the third largest higher education systems oI the world aIter
US and China. With 389 Universities, 16009 Colleges, including 4642 colleges oI
proIessional and technical education, the country`s higher education seems to be shining in
terms oI numbers (ReIer table 1). Although the country has diIIerent kinds oI academic
institutions, each Iocusing on the diIIerent value segment in the higher education value chain
(Tripathi, 2005; Singh & Tripathi, 2006), the competitiveness oI Indian higher education
institutions comes into question, especially, when measured in terms oI quality and global
parameters oI competitiveness. India with 48th position in the global competitiveness ranking
oI World Economic Forum (Table 2) has to consider and implement serious measures to
improve the competitive edge in the global market. The survey considers the country`s
perIormance on critical parameters like institutions, inIrastructure, macroeconomic stability,
health and primary education, higher education and training.


Table 1: Number oI higher educational institutes in India
A. Universities
1. Central 18
2. State 275
3.Institutes establishes under state legislature 05
4.Institution deemed to be University 96
5.Institution oI national importance 13
6.Research Institutes 196
%otal 543
B. olleges
1.General Education 10,377
2.Engineering,technology and Architecture 1,302
3.Medical 817
4.Teacher training 1,802
5.Others 2,431
%otal 16,009
Source. www.nic.in

Table 2: Global Competitiveness Index
Country Ranking Score
United States 1 5.67
Switzerland 2 5.62
Denmark 3 5.55
Sweden 4 5.54
Germany 5 5.51
Finland 6 5.49
Singapore 7 5.45
Japan 8 5.43
United Kingdom 9 5.41
Netherlands 10 5.40
Taiwan, China 14 5.25
China 34 4.57
India 48 4.33
Source. World Economic Forum, Global competitiveness Report 2007
Impact of Recession on India`s Education Sector
India`s education sector remain unaIIected by global recession in 2008, despite there was
increase in intake oI management graduates which we will analyse in later part oI the paper.
In Iact 2008-2009 was the boom period Ior India educational sector as there were maximum
enrolment Ior engineering and business schools.
As education is considered as the basic necessity and in India it is seen as a long term
investment by parents and with respect to the demand still there is a huge supply gap. The
craze to study in Ioreign university among the Indian youth still alive which will prompt
Ioreign education institute to target India provided vast young population willing to join. We
will see more and more Ioreign educational institutions coming up in India in recent coming
years. Huge government as well as private investment is likely to Ilow into the Indian
educational system. D E Shaw, a US$ 36 billion, global private equity Iirm is planning to
invest around US$ 200 million in the Indian education sector.

Purpose of the study
Everyone is talking about Recession and its impact, but what we realized that education is
one sector which remains untouched by global recession especially in India. Due to recession
we saw a boom in Indian higher education sector. This study will give an idea that iI
recession strikes again, what will be the consequences especially in the education sector. Job
sector was seriously aIIected by recession, due to which many went Ior higher education.
Although recession has tons oI negative impacts, but education was one sector where it came
as a boon.